Maximizing Dividends: Navigating Taxation For Optimal Payout Strategies In Firms

Abstract

Purpose: The primary goal of this research is to comprehend the role that taxes play in determining a steady dividend payment ratio.

Methodology: A Survey was conducted among a total of 71 participants, who were selected using the random sampling technique. Using primary quantitative data, the study has successfully identified the key areas that are related to dividend payout ratio and taxation.

Findings: It is clearly identified that the taxation of any market impacts the amount of tax that is being paid and therefore, impacts the net profit of the organisation.

Research Limitations / Implications: This study can be used as a springboard for more in-depth investigation on the taxation system and how it relates to a company's dividend policy. Additionally, it might help in recognizing the important contributing components. In subsequent research, the study's sample size may potentially be expanded.

Originality/value: The study is the original work of the author and is not published anywhere.